What is the status of Narendra Modi's Stand Up India scheme? - Letsdiskuss
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Aditi Ahuja

Financial Advisor | Posted 08 May, 2019 |

What is the status of Narendra Modi's Stand Up India scheme?

Aditi Ahuja

Financial Advisor | Posted 08 May, 2019

The Standup India scheme has failed to deliver the promises it claimed. Prime Minister Narendra Modi launched the new scheme in 2016. It was supposed to support the entrepreneurs of India but it has not proved to be as effective as it was supposed to be. The scheme aimed at sanctioning loans to the deprived and discriminated communities that were unable to set up their business. Although it targeted women entrepreneurs and SC/ST sectors the reports from RTI revealed shocking results. 

The present figure of start-ups companies can be based around 2,68000. Out of the total, only a handful (about 40,000) companies have been able to get sanctioned loans under the Standup India scheme. To estimate financially only INR 8803 crores were being given out from the total amount of INR 26800 crores.

Thus from the analytical data one say that the total percentage of the sum given out was only 32.85% of the total figure. Out of the total number of banks that were instructed to sanction loans only a handful of commercial banks of the public sector and the rural regional banks were able to carry out the deeds. As the Ministry laid down the undesirable reports many have remarked it as the lack of will of government for ensuring compliance. 

Despite their claims and promises the government authorities failed to disclose the discriminatory issues of the bank that participated in the scheme early on. To be precise the RTI report revealed involvement of only 21 commercial banks acting in the public sector while the private firms comprising of only 9 sectors and 42 RRBs, participated in the scheme.